stment. This view explained why the amount of savings was not always equal to the amount of investment or the interest rates. Under the conditions of underemployment, an increase in spending will lead to greater output and employment. While others argue that an increase in the money supply will lead to inflation in the long run, some say that some say that the only way to keep unemployment under control is to accept continues inflation. Keynes theories were right for his time, for he not only helped the American economy but also the British economy. As of today much of Keynes theories are under scrutiny and are now subject to a good amount of modification. Milton Friedman was born on July 31, 1912 in Brooklyn New York. He served as a professor at the University of Chicago, and is one of the leading conservative economists of the 20th century. After serving on many government boards and being advisor the President Regan, he received the Presidential Medal of Freedom in 1988. In 1976 he was awarded the Nobel Prize for Economics. Friedman is one of leading American advocates of the school of monetarist school of economics. In conjunction with his wife Rose, Friedman has composed many books including Free to Choose, Capitalism and Freedom, A monetary History of the United States, and Monetary Trends of the United States and the United Kingdom. As a monetarist, Friedman is in direct opposition to many of Keynes theories. He believes that the government should also have less of a role in the economy. Friedman whole heartily believes that the government which governs the least, governs the best. The Government has three primary functions. It should provide for military defense of a nation. It should enforce contracts between individuals. It should protect its citizens against crimes against themselves or their property. -Milton FriedmanThe free market is essential and he is a devout supporter of it. Friedman argues that sl...
